I am starting this thread in order to share ideas about Woodie CCI trading for forex on short term basis. I came across CCI last September and still at learning curve. Spent few months on demo and currently trade real account at small pip value, since I am not at the stage where I am confident to use it on large account yet. My trades are based on 3 min chart, and I only trade eur/usd pair. My choice for this time frame was potential draw down which usually is no more than 4-6 pips per trade. The potential target is around 10-20 pips. Below are my trades from last few days. Regards, redduke
01/18/2006 It was a great morning. 1) TLB long â great trade, the market rallied up with no draw down at all. 2) TLB and famir short â another trade that worked out great. 3) ZLR short â it did go down, but it took few bars for sidewinder to turn yellow, so I did not take this one 4) TLB long â this one paused, but than got into positive. There were plenty of pips for grabs today.
01/19/2006 1) TLB and regular divergence long â this trade ended up several pips in positive. 2) TLB short â turned out to be a great trade, but I closed it at BE because nothing was going on for few bars, and then it dropped 20+ pips. Need to be patient and wait for few more bars to see if set up is working. 3) ZLR short â lost few pips when it reversed and became famir. 4) TLB and famir long â the trade ended up making several pips. It would have been a really good day, if I had not make a mistake on trade 2. Still ended the day in positive.
01/20/2006 1) Ghost and TLB long â this turned out to be a great trade. I entered this trade as TLB (blue line), but it could have been entered earlier as ghost (while line). I had small draw down of 5 pips, but ghost entry had no draw down at all. This was a 20 pip trade.
I have added white line, which is my entry, and yellow line which, is an exit to the charts. 1) TLB short â turned out to be a great trade. It almost hit 20 pip profit (I have hard stop loss set at 20 pips), and I thought it was going down. Once I saw the move is over, the trade was done. 2) Ghost long - it did not work, so I lost few pips on this one. What I should have done immediately after closing it, is taking ZLR short. This particular did not go down by much tough. I find it very hard to immediately reverse positions/direction after previous trade ended up even with small loss. 3) TLB long â I closed this one at BE +1, after it did not go anywhere for about 20 minutes.
1) TLB short â this failed trade was my mistake. I did not notice that the spread has widened (probably due to London stock market opening at the time I entered the trade), and I also got 1 pip slippage. When spread widens something is happening in markets, and I usually say out until I can see what is going on. Closed this trade few minutes later at 6 pips loss. 2,3) ZLRs long â there were major coming out between 2 and 3, so I stayed on sidelined, and missed that great move up. But 3 did not look strong to me after CCI went back and forth. What I think added to 3 move up was that IFO number was very EUR bullush. 4) ZLR long â I almost took ZLR few bars before, but it disappeared around bar close. Turned out to be Ok trade. It pretty much offset number 1. 5) TLB short â I did not take this one because up trend was still very strong. If I had taken it, this trade came to my tolerance limits, so I would have probably closed it at small loss. It did not go anywhere for awhile and then slowly started going down. As I finished writing this, trade 5 sharply went down about 10 more pips. But keeping losses small is what I force myself to do, even if it causes me some good trades. Regards, redduke